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American Express - Merchant Promotions?
olimits7

5+ Year Member



 
Msg#: 4413569 posted 4:31 pm on Feb 2, 2012 (gmt 0)

Hi,

I've seen on some websites where they advertise that if you join/signup with an American Express credit card that they end up waiving any monthly/yearly membership and signup fees for joining the site.

I was wondering, does anyone know how this works? Does Amex offer merchants promotions where it allows the merchant to waive these fees because Amex is reimbursing them?

Thank you,

olimits7

 

Planet13

WebmasterWorld Senior Member planet13 us a WebmasterWorld Top Contributor of All Time Top Contributors Of The Month



 
Msg#: 4413569 posted 3:59 pm on Feb 3, 2012 (gmt 0)

I don't think so.

American Express charges us higher rates (as a merchant) than either Visa, MC, Discover, or PayPal.

American Express recently started offering higher reqards for their CARDHOLDERS. Turns out that someone had to pay for those extra rewards, and they raised the rates they charged us merchants for accepting the card.

So we stopped taking the card. Apparently lots of other merchants stopped too, because whenever anyone tries to pay with an Amex card and we tell them we don't take it, they usually say something like, "Man, nobody takes Amex anymore. Wonder why that is?"

bakedjake

WebmasterWorld Administrator bakedjake us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 4413569 posted 4:00 pm on Feb 3, 2012 (gmt 0)

So we stopped taking the card. Apparently lots of other merchants stopped too, because whenever anyone tries to pay with an Amex card and we tell them we don't take it, they usually say something like, "Man, nobody takes Amex anymore. Wonder why that is?"


As a merchant, my amex customers spend on average 20% more than the other three. I'm not sure if it's the case for you, but you want to be careful. Most of our amex customers are on charge (as opposed to credit) products and that usually indicates a higher value customer. Don't miss the forest for the trees.

Also, don't forget that your customers have a choice too. As a cardholder, I'll always prefer a merchant that takes amex over one that doesn't. It's only if there are no alternatives available will I whip out the Visa.

I was wondering, does anyone know how this works? Does Amex offer merchants promotions where it allows the merchant to waive these fees because Amex is reimbursing them?


Yes, there are marketing deals Amex does with certain merchants. I've seen them give co-marketing dollars and statement credits depending on the deal. Typically it's with bigger merchants, but I've seen a couple smaller ones. Call merchant services and tell them you're interested, and they'll point you in the right direction.

jwolthuis

WebmasterWorld Senior Member 5+ Year Member



 
Msg#: 4413569 posted 4:56 pm on Feb 3, 2012 (gmt 0)

my amex customers spend on average 20% more than the other three.

It's only if there are no alternatives available will I whip out the Visa.

I agree. We don't accept AmEx because of what Planet13 said, and I think we're money-ahead.

AmEx cardholders always have a backup Visa card to use to place those 20% bigger orders, and they don't reduce the size of their shopping cart when they pay with their backup Visa.

votrechien



 
Msg#: 4413569 posted 3:34 pm on Feb 5, 2012 (gmt 0)

I can only remember one or two incidents in the past few years where a customer has not had a backup card. Possibly the customer would spend more if he can use his Amex card for the rewards but I doubt that marginal increase is enough to make up for the loss.

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